Crude Oil Price Flops; Trump May Ease on Iran After Bolton Fallout

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"The installation of the necessary pipelines and terminals is continuing apace, which will ensure that the trend continues".

Iran's exports of 2.5 million barrels in early 2018 have largely disappeared from the market due to stringent USA sanctions, but OPEC still limits production to keep prices at current levels.

US crude stocks have fallen almost 22 million barrels in a span of just three weeks, with the draws coming unusually at the tail end of summer, when driving activity in the U.S.is typically on the decline.

Analysts said fall in crude oil futures is mostly in tune with a weak trend in domestic markets where it slipped on profit-booking by speculators. While Saudi Arabia has slashed production well below its quota under the output-cut agreement, not all producers have been as compliant.

OIl prices were driven lower by the sacking on Tuesday of U.S. National Security Advisor John Bolton by President Donald Trump.

Oil prices are down about 15% from its peak in April as markets have been under pressure on fears that the Sino-U.S. trade war would drag on. "It just simply means that we are going to produce as much energy as we can, as cleanly as we can and as affordably as we can". China is the world's largest oil consumer and as such, oil prices can hinge upon how well its economy is performing. Analysts were looking for a 1.4 million barrel draw in gasoline and a 220,000 barrel rise in distillate supplies.

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In a monthly report, the Organization of the Petroleum Exporting Countries said oil demand worldwide would expand by 1.08 million barrels per day, 60,000 bpd less than previously estimated, and indicated the market would be in surplus.

Brent crude futures rose 51 cents, or 0.6 percent, to $62.89 a barrel by 0405 GMT, while West Texas Intermediate (WTI) futures were up 54 cents, or 0.9 percent, to $57.94 a barrel.

The Paris-based agency kept its oil demand growth forecasts for this and next year at 1.1 million bpd and 1.3 million bpd, respectively.

The report suggests there will be a 2020 supply surplus of 340,000 bpd if OPEC keeps pumping at August's rate and other things remain equal, more than the surplus forecast in last month's report.

Saudis new energy minister Prince Abdulaziz bin Salman says its October oil production would be 9.890 million barrels per day.

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